Financial Technology, Non Performing Loan Ratio, Bank Size on Bank Stability: Evidence From Malaysian Listed Banks

This study investigates the effects of FinTech, non performing loan ratio and bank size on the case of stability in banks. This research work utilizes secondary data derived from listed Malaysian banks for a period extending from 2010 to 2024. The Z-score is used as a measure of banking stability, while non-interest operating costs are taken as a proxy for FinTech adoption. Non performing loan ratio (NPL) and bank size, are also employed as the independent variables. The analysis of the relationships among the variables is performed using STATA. The results implicate that FinTech adoption and non performing loan ratio have a negative yet insignificant correlation with bank stability, while Bank Size has a negative and significant correlation with stability. This finding indicates that larger banks may reduce its stability due to operations cost and risk exposure. Thus, the banks manager should might tightening is liquidity and risk control to ensure the bank’s stability in the long run and it may give signal to investors on the firm value and impact their financial decision.